UK inflation just keeps getting worse

UK inflation is getting out of hand, with 'absolutely horrendous' factory-gate price rises. So, despite the economy heading for recession, don't bet on an interest rate cut in the near future.

The inflation monster is showing no signs of getting back in its cage. If you thought last month was bad, just take a look at the latest UK producer price (PPI) figures otherwise known as factory gate prices.

Capital Economics called them "absolutely horrendous", and it's no exaggeration. All the figures were far worse than expected, with the most dramatic being the 27.9% year-on-year leap in input price inflation, up from 23.3% last month, and compared with City hopes of 23.8%.

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